While it is clear that augmented use of technology is the way forward for banks, several qualms about execution remain. To be most effective, banks and financial institutions should re-define themselves as agile technology companies in the financial services industry and not the other way around. This implies that BFS companies should shed their non-core operations, retaining only those businesses that provide true distinction for customers. Banks will also require to scrutinise the fundamentals underpinning their core operations as customer preferences, demographics and lifestyles change.
In today’s connected world, consumers are no longer willing to put up with postponements and awkward fees for processing cross-border payments. As customer demand for frictionless on-demand payments grows, payment providers and banks will have to come up with more competitive services to offer ever faster cross-border payment services to their customers. This will further drive the wider adoption of blockchain and other distributed ledger technologies, empowering financial institutions to transfer low-value payments in real-time at a fraction of the cost incumbent processes are taking.
The spending capacity on digital transformation is anticipated to grow soon. Financial services incorporating banking, insurance, security, and investment will experience the highest digital transformation expend of any industry. Still, enormous investments will be made in robotic manufacturing and are forecasted to twofold within the coming three years.
The industry will see a massive shift in focus from B2B to B2B2C. An increasing number of B2B companies will transition towards B2B2C eCommerce (Business-to-Business-to-Consumer), providing their customers with highly bespoke experiences and tailored product offerings.
As financial service providers endure to cope with the expansions that have at present made an impression, their aptitude to transform themselves with speed and agility, and their future stratagems to survive the next revolution will regulate the winners and losers in this technologically advanced future.